PCP early settlement calculator

  • Estimate the figure to clear your PCP early
  • See the interest rebate you get back
  • Includes the balloon (GMFV) automatically
  • Check your equity against the car's value
  • No sign-up required

Updated August 2026 · based on the Consumer Credit (Early Settlement) Regulations 2004

New car in dealership showroom

Work out your settlement figure

Enter the details from your PCP agreement and how many monthly payments you've made so far. You'll see the estimated settlement figure to clear the finance today, the interest rebate you get for settling early, and whether you're in positive or negative equity against the car's current value.

£
£
%
mo
mo
£
Estimated settlement figure
£17,893
To clear the finance after 24 of 48 payments. Ask your lender for the official figure.
Monthly payment
£326
Interest rebate
£2,430
Your equity
£1,107
Payments left
24
Remaining monthly payments£7,823
Plus balloon (GMFV)£12,500
Total still contracted to pay£20,323
Less interest rebate−£2,430
Estimated settlement figure£17,893
This estimate uses the actuarial method set out in regulation 4 of the Consumer Credit (Early Settlement) Regulations 2004: your remaining payments and the balloon are discounted back to today at your agreement's monthly rate. The result is the capital you still owe. Your lender's official figure may add up to about one month's interest, and it's the only figure that legally applies. Ask for it in writing before you commit.

Figures are illustrative only and not financial advice. Your real settlement figure depends on your lender, the exact dates and any fees. For your statutory rights, see the early settlement regulations and the FCA guide to car finance.

Sources

How PCP early settlement works

Settling a PCP early means paying off the whole agreement in one go, before the term ends. You might do it because you want to change cars, you've come into some money, or you've found the car is worth more than you owe and you want to bank the difference. Whatever the reason, the lender gives you a settlement figure: a single amount that clears everything, including the balloon.

Here's the part that catches people out. The settlement figure is not just your remaining monthly payments added up. If you stopped paying tomorrow and totted up every payment left plus the balloon, you'd be counting interest you haven't been charged yet. When you settle early, you don't pay that future interest. The lender takes it off as a rebate, and what's left is roughly the capital you still owe.

The rebate is set by law, not by the lender

Since 2005, the rebate has been governed by the Consumer Credit (Early Settlement) Regulations 2004. Regulation 4 sets out an actuarial formula: your remaining payments, and the balloon, are discounted back to the settlement date using the rate baked into your agreement. That replaced the old Rule of 78, which front-loaded interest and left people paying more to settle early. The current method is fairer, and it's the reason our calculator discounts each future payment rather than just subtracting a flat percentage.

One quirk worth knowing: regulation 5 lets the lender treat the settlement date as up to 28 days after you give notice, so most quotes include a little extra interest, usually around a month's worth. That's why your lender's official figure might be slightly higher than the estimate here. It's not a penalty, it's the deferment the rules allow.

A worked example

Say you financed £22,500 on a £25,000 car, at 7.9% APR over 48 months, with a £12,500 balloon. Your monthly payment is about £326. After two years (24 payments) you fancy a change. Add up what's left and you'd have 24 more payments of £326 (£7,823) plus the £12,500 balloon, which is £20,323 on paper. But settle now and the interest rebate knocks that down to roughly £17,893. That's the capital you still owe, and it's the figure that matters.

If the car is worth £19,000 at that point, you're in positive equity of about £1,100. You could put that towards your next deposit. If it were only worth £16,000, you'd be £1,900 in negative equity and would need to find that gap before you could walk away clean.

Settlement versus voluntary termination

Settling early is not the same as handing the car back. If you've paid at least half the total amount payable, the Consumer Credit Act gives you the right to voluntary termination: you return the car and owe nothing more, provided it's in fair condition. Settlement is the opposite choice. You pay off the finance and keep the car. Which one makes sense depends on the car's value against what you owe, and our PCP equity calculator is built for exactly that comparison.

Before you act on any figure

Treat the number here as a planning estimate. The only figure that binds the lender is the official settlement quote, which you can request for free at any time. It'll be valid for a set number of days. Check it against this estimate, and if it's wildly different, ask the lender to explain how they've worked it out. You're entitled to that.

Common questions

The settlement figure is the amount still owed on the finance, which is the outstanding capital plus a short amount of interest, minus a statutory rebate for the interest you no longer have to pay. Under the Consumer Credit (Early Settlement) Regulations 2004, the rebate is worked out by discounting all your remaining payments, including the balloon, back to the settlement date. In practice this comes out close to the capital you still owe, and lenders can add up to about a month of extra interest.
When you settle early you stop paying interest for the rest of the term, so the lender gives back the interest built into those future payments. That is the rebate. It is set by regulation 4 of the Consumer Credit (Early Settlement) Regulations 2004, which uses an actuarial method rather than the old Rule of 78, so it is fairer to you than pre-2005 deals were.
Yes. The settlement figure clears the whole agreement, so it already accounts for the balloon (the guaranteed minimum future value). You don't pay the balloon separately on top. Once you've paid the settlement figure, the car is yours and there's nothing left to settle.
If the car's market value is higher than the settlement figure, the difference is your positive equity. You can use it as a deposit on your next car or take it as cash if you sell privately and pay off the finance. If the car is worth less than the settlement figure, that's negative equity, and you'd need to cover the gap yourself.
There's no penalty for settling a regulated agreement early, but the lender can charge up to about one month's interest as allowed under the settlement regulations. Always ask your lender for an official settlement figure in writing, because that quote is the number that legally applies, not an estimate from any calculator.

Wondering if you're in profit? Use the PCP equity calculator to compare the settlement figure with your car's value. Starting a fresh deal instead? Head back to the PCP calculator, or see how fast the car loses value with the depreciation calculator.